Board faces tax break decision

Natchez Staff

Published Friday, February 9, 2001

Friday, February 09, 2001

The Natchez Democrat

Should a tax exemption be a reward for a business' commitment

to a community or an incentive to stay and invest? That's the

question the Natchez Board of Aldermen face as they consider a

request from Titan Tire of Natchez to exempt an additional $1.9

million worth of assets at the plant.

The request comes amid a pair of layoffs at the plant within

the last four weeks.

Aldermen Sue Stedman, Ward 3; David Massey, Ward 5; and Jake

Middleton, Ward 6, say they are prepared to vote in favor of granting

the exemption. Ward 4 Alderman Theodore "Bubber" West

will not comment on how he plans to vote, and Aldermen James "Ricky" Gray,

Ward 2, and Joyce Arceneaux, Ward 1, have said they want to tour

the plant and talk with Taylor before making a decision.

This week Arceneaux sent a letter to the state Attorney General's

Office, the State Tax Commission (which approves exemptions),

the State Auditor's Office and the Office of the Treasury asking

for their help in gathering information about the Titan plant,

including the actual number of employees and equipment still in

the plant.

In January, an unspecified number of temporary employees were

laid off from the Natchez plant and some equipment was removed.

Taylor said there are between 250 and 300 employees still at the

plant.

But Arceneaux said she is hearing rumors from her constituents

that the number is actually lower, and she hopes the state can

step in and determine the exact amount of employees and equipment.

"There is some concern that the information upon which

we rely to make that decision may not be accurate or reliable,"

Arceneaux states in the letter.

Arceneaux also sent copies of the letter to Mayor F.L. "Hank"

Smith and the other aldermen.

Smith said he wished Arceneaux had not sent the letter, because

he does not believe the number of employees and equipment at Titan

are deciding factors in whether the plant gets a tax exemption.

"It might be something nice to know, but the bottom line

is I don't know if that's a large factor in a tax exemption,"

he said.

Also, Smith said Arceneaux's action could send the wrong message

to any prospective industries looking at Natchez.

Still, Smith said Arceneaux had every right to request information

of the state if she felt it important in making her decision.

And "out of courtesy and respect for the aldermen who

feel strongly about it," Smith said he is willing to wait

on a vote until they have the information, either from the state

of Taylor himself.

Smith said it is the outcome of the vote itself, not the time

it took to make it, that will send the ultimate message to prospective

industries.

Though he had not yet received the letter, Massey also said

it should never have been sent, because it sends a mixed message

to potential industry.

"The last message we want to send to businesses looking

at Natchez is before we give you a tax deferment, we're going

to write the attorney general and get them to come down and find

out how many employees you have or how much equipment you have,"

he said.

Massey said he wonders if Arceneaux is truly concerned about

equipment and employees, why she voted against a tax exemption

when the plant was fully staffed and equipped in 1999.

"Some of us on the board of aldermen are for every job

we can get here in Natchez," Massey said.

West also said he had not seen the letter, but believes it

was Arceneaux's choice to request information from the state.

When asked if he was interested in knowing the exact number

of employees and equipment at the plant, West responded: "I

will take everything into consideration when I make my vote."

"Whether the tax exemption is tied to employees, or whether

it is tied to equipment, all of those things will go into my decision,"

he said.

But even larger an issue than the tax exemption is the economic

future of Southwest Mississippi, West said.

"We need to project a positive image in Southwest Mississippi,

and we need to get behind our (Natchez-Adams County Economic and

Community Development Authority) and let them work," he said.

Stedman refused comment on her impressions of Arceneaux's letter,

but echoed West in saying the larger concern was economic development.

"This controversy over a tax exemption has got to stop

if we want to recruit new industry," Stedman said.

"We've got to put our best foot forward."

Gray said he has no problem with Arceneaux asking for state

assistance, because he has many of the same questions about Titan.

"It's a big decision we have to make, and I want all the

information I can get before I make it," he said.

In addition to the exact number of employees and equipment,

Gray said he wants to know what are Taylor's long term plans for

the Natchez plant.

"If a tax exemption is not going to benefit the people

of this town, I need to know that before I vote," he said.

Though he has no problem with Arceneaux sending the letter,

Middleton said he does not need to know the number of employees

and equipment to cast his vote.

"If it's 100 employees or 250 employees, I'm just glad

they're there," he said. "I'm going to do everything

I can to make sure they stay there."

But Middleton believes the board should act soon on the tax

exemption, because people are growing tired.

"It's time for us to rally and move forward," Middleton

said.

As for Taylor, he said Arceneaux is entitled to her request

and he believes her concern to be sincere, but he wonders why

Titan is being singled out.

"Maybe the first thing she should do is to check on how

many other businesses in Natchez and how many in Mississippi have

this (tax) exemption," he said. "Why just single out

Titan? Why doesn't she ask every business that gets this exemption?"

Some aldermen have said the board may vote on the tax exemption

at the next meeting, Feb. 27. But others have said they want to

visit the plant and talk with Taylor before bringing the exemption

to a vote.